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- AUD/USD Technical Strategy: Flat
- Support: 0.9318-23 (14.6% Fib exp., channel bottom), 0.9229
- Resistance: 0.9390 (23.6% Fib exp.), 0.9460-0.9507 (Apr 10 high, 38.2% Fib exp.)
The Australian Dollar is struggling to launch the next leg of an advance started in late January after bouncing from rising channel support. A break above the 23.6% Fibonacci expansion on a daily closing basis targets the 0.9460-0.9507 area, marked by the April 10 high and the 38.2% level. Alternatively, a turn below the 0.9318-23, the intersection of the channel floor and the 14.6% Fib, exposes a horizontal support shelf at 0.9229.
Risk/reward considerations argue against entering a trade with prices wedged tightly between near-term up- and down-side technical barriers. We will continue to stand aside for now, waiting for a more attractive setup to emerge.
Daily Chart - Created Using FXCM Marketscope 2.0
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com